In the last week, the long liquidation dominance metric has grown from 0% to +10%, while BTC has held within a narrow range of $103K–$106K without significant price corrections. The increase in long position liquidation share without a sharp price crash indicates sustained buyer support. This is a good signal for the market.
If long liquidation dominance rises by another 5–7%, there will be a high probability of washing out bears from the market, and once the metric begins to decline, this will become a turning point and indicate a reversal in futures market sentiment in favor of bulls.
